Paramount Skydance has received approval from the European…
Paramount Skydance has received approval from the European Commission for its deal to acquire Warner Bros. The sale of shares must be completed within 13 months after closing the deal.
Consensus
- The European Commission approved Paramount Skydance's acquisition of Warner Bros. Discovery for $110 billion.
- Paramount Skydance agreed to divest its stake in the United International Pictures joint venture with Universal Pictures within 13 months after the deal closes.
- Paramount Skydance committed to not entering into any film distribution agreements with Universal Pictures in Europe for ten years.
- The European Commission stated that these commitments eliminated regulatory concerns about competition.
- The acquisition was announced on February 27.
Points of divergence
- A U.S. federal court has temporarily blocked the merger, following a request by a coalition of 12 state attorneys general who argue the deal would destroy competition in Hollywood. — kommersant
- For each calendar day of delay after September 30, David Ellison will be required to pay Warner Bros. shareholders $7 million per day as compensation. — kommersant
- The U.S. Department of Justice approved the deal before its in-house lawyers could formally submit objections, stating it would not harm competition or consumer interests. — vedomosti
- Some staff at the U.S. Department of Justice were inclined to recommend challenging the deal despite official approval. — vedomosti
Coverage (2 sources)
- EU allows Paramount to buy Warner Bros. for $110 billion — Коммерсантъ
- EU approved Paramount deal to buy Warner Bros. Discovery — Ведомости